–Private payrolls increased by 121,000, with the bulk coming from private services at 90,000. Gains were strongest in business services (31,000), education and health (37,000), and leisure and hospitality (39,000), but gains in these sectors were below what had been observed in recent months. On the goods-producing side of the ledger, construction payrolls fell by 7,000, and we see some of the softness in this category as related to weather, which may have boosted construction payroll numbers in previous months. Manufacturing payrolls, however, grew by 31,000 and, along with gains in leisure and hospitality, suggest that some underlying labor market strength in cyclical sectors remains in place. The public sector shed 1,000 jobs, and recent trends there suggest that the persistent declines in public sector payrolls have subsided. –Michael Gapen, Barclays Capital

–The March employment report was decidedly downbeat and offsets some but not all of the positive tone we’ve seen in recent labor market indicators. All you have to do is check off the boxes. Softer payroll growth? Check. Shorter work week? Check. Soft earnings? Check. –Neil Dutta, Bank of America Merrill Lynch

–Today’s numbers will inevitably jump-start fear that the winter spike in job growth was in fact a temporary and weather-driven phenomenon, as we had feared. Our weather argument centers around the idea that an unusually warm Dec – Feb period pulled forward what would normally be Springtime payroll additions. Under that theory, as the calendar flips to March and now April, we would actually expect the labor markets to weaken to below-trend levels for a few months, before returning to ~150,000-175,000 monthly expansion. This March result, while not fully confirming the weather-driven pull forward, is certainly one more datapoint in favor of the theory. –Guy LeBas, Janney Montgomery Scott

– The road back to strong growth is still filled with potholes which make the trip longer but don’t stop the journey. –Naroff Economic Advisors

–The big question is whether labor market improvement will be sustained in the face of still considerable global economic and financial headwinds. Today’s result clearly raises questions, and given the numerous negatives confronting the economy, it cannot be simply dismissed as a hiccup in the data. Rather, it plays into the notion that an unusually mild winter combined with more aggressive seasonal adjustment than in past years probably boosted economic data in general during the peak winter months, the employment report included. To the extent that this was a factor, it would tend to be unwound over the spring and summer (seasonal adjustment is a zero-sum game over the course of the calendar year). It is possible, therefore, that the March payroll results are a harbinger of things to come. Of course, it is also possible that they really are a hiccup, and April will see significantly better results. We hope so, but fear not. –Joshua Shapiro, MFR Inc.

–This report, even taken at face value, is not a sign of weakness given the volatility in the data (the three-month average gain in payrolls, at 212,000, outstrips the 12-month gain of 158,000, while hours work rose 3.7% in the first quarter). –RDQ Economics